How people lose money in the stock market

People talk a lot about how you can make money in the stock market. However, knowing how people lose money in the stock market can be as important to avoid losing your hard-earned money.

So let’s look at some ways you will be guaranteed to lose money.

” Rule 1, don’t lose money. Rule 2, don’t forget rule 1. ” ~ Warren Buffett

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This is how you get high returns in the stock market

When it comes to investing in the stock market, you’ll find a lot of advice. There are many strategies used to try getting great returns. And as it goes with everything, you have good strategies and bad ones. The strategy you want to choose for your portfolio is up to you. Let me share some important basics you should be aware of before investing in the stock market.

 

” The big money is not in the buying and the selling, but in the waiting. ” ~ Charlie Munger

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The income statement: how to read

Key takeaways:

The income statement shows how much a company earned or lost during the year (or quarter).

An income statement matches the revenues earned from selling goods and services, against all costs and expenses incurred in the operation of the company. The difference is what we call net income (or loss).

On top of the Income statement, we find the revenue (or net sales)  which is called “the top line”. From the top line, all costs and expenses are deducted until we arrive at the net income, also called “the bottom line”.

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